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Managing sustainable global supply chains

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					        managing
sustainable global
    supply chains
        Framework and Best Practices




                                 Prepared by
                       Dr. Stephen Brammer
                        Dr. Stefan Hoejmose
                       Dr. Andrew Millington
        nbs.net                     and NBS
Supply chain
disruptions can
be devastating
for operations
and share price.


Managing Sustainable Global Supply chains   2
How can
companies manage
their global supply
chains to leverage
opportunities and
mitigate risk?

Managing Sustainable Global Supply chains   3
the need for responsible and
responsive supply chains
Globalization has profoundly affected how    At the same time, new risks and challenges
companies are managed strategically and      have emerged from these new, global supply
operationally.                               chains. The risks range from inconsistent
                                             or poor quality to supply disruptions. Add
One key outcome: the production of           to these risks the layer of cultural, legal,
many goods has shifted to developing and     administrative, linguistic and political issues
transitional economies, resulting in lower   arising from cross-boundary networks.
cost of production. China has become the
‘workshop of the world,’ offering a large    Finally, consider the environmental issues
workforce and low overhead costs that        such as waste and emissions reduction,
enable companies to produce high volumes     recycling, product design, and recovery
of products.                                 and the social issues such as child labour,
                                             working conditions, bribery and corruption.
                                             There is seemingly no end to the complexity.


Globalization + public concern about social and environmental issues
= increased complexity in managing supply chains




Managing Sustainable Global Supply Chains                                                      4
While at one time addressing these social and          STAKEHOLDERS WANT SUSTAINABLE
environmental issues might have just been ‘nice to     SUPPLY CHAINS
do,’ that is no longer the case. Companies that fail
to manage such issues expose themselves to both
                                                       28%     Consumers
operational and reputational risk. For example:
                                                         22%       Government
• Nike was publicly accused of using child
  labour in offshore factories in 1996. This              18%       General Public
  criticism endured until 1998 when Nike’s
                                                             16%     Activists
  CEO announced significant, long-term
  measures to improve working conditions                                  8%     Media
  at supplier factories.
                                                             4% Industry Peers
• Mattel was forced to recall US$100 million
  worth of product when one supplier used               3% Employees & Others
  lead-contaminated paint on the company’s toys                      3% Investors
                                                                                          FIRM
  in 2007. The company watched its stock price
  fall 18% in the months that followed and has
  since been the target of litigation.                 This figure shows the sources of pressure on
                                                       firms to address social and environmental issues
• Apple faced renewed criticism in 2011 for both       in their global supply chains. The percentages
  possible environmental indiscretions and a lack      indicate the frequency with which each pressure
                                                       was cited in the research.
  of transparency in its supply chain. Apple had
  previously admitted that in 2008 half of its
  suppliers’ factories for key products including
  iPhones and iPads weren’t paying valid
  overtime, one quarter weren’t paying workers
  minimum wage, and one quarter failed to meet
  environmental standards. Time will tell if such
  issues will permanently tarnish Apple’s
  ‘clean’ image.




Managing Sustainable Global Supply Chains                                                                 5
Designed for                   How can your company build a global supply                     The Network for Business Sustainability
executives and                 chain that is competitive while sustainable?                   commissioned a systematic review of the
                               Responsive while responsible? By applying                      body of research on sustainable global supply
senior supply                  this research to your supply chain, you can                    chains. Synthesizing data from 194 studies
chain, purchasing              equip your company to respond to consumer                      spanning 25 years of research, this review
and sustainability             demands, survive global shocks, be more                        presents the most comprehensive and credible
managers, this                 flexible, avoid supply disruptions, mitigate                   evidence to date on developing sustainable
report presents                reputational risk, avoid regulatory barriers,                  supply chains. The frameworks presented in
                               and fend off global competition.                               the report were developed inductively from
frameworks
                                                                                              the existing anecdotal and empirical evidence.
for developing                                                                                The full-length systematic review is available
competitive and                WHAT ARE THE KEY ISSUES IN
                               INTERNATIONAL SUPPLY CHAIN                                     at nbs.net/knowledge/supply-chains.
sustainable global             SUSTAINABILITY?
supply chains                                                                                 WHAT IS ‘MANAGING FOR SUPPLY CHAIN
                                                                                              SUSTAINABILITY’?
                                                                                              We adapt an existing definition describing ‘managing
                                                                                              for supply chain sustainability’ as incorporating a
                                                                                              company’s social, environmental and economic goals
                                                         0 10 20 30 40 50 60 70 80 90 1       into the coordination of inter-business processes to
                                 Working Conditions                                           improve the long-term economic performance of the
                  “Environmental” or “Green” Issues
                CSR (Corporate Social Responsibility)
                                                                                              individual company and its supply chains.1
                       Low Wages/Minimum Wages
                                       Human Rights
                                         Child Labour
                                        Sustainability
                                  Health and Safety
                             Forced/Bonded Labour
                                         Sweatshops
                                                Ethics
                                               Bribery
                                           Recycling
                                                Waste
                             Air Pollution/Emissions
                          Water Pollution/Emissions
                                      Working Hours

                               This figure shows the key sustainability
                               issues in supply chains. The frequency
                                                                                          1   Adapted from Carter, C. R., and Rogers, D. S. 2008. A framework of sustainable
                               represents the number of sources (of 194)
                                                                                              supply chain management: Moving toward new theory. International Journal of
                               that dealt with each issue.                                    Physical Distribution & Logistics Management, 38(5): 360–387.


                               Managing Sustainable Global Supply Chains                                                                                                       6
developing sustainable global
supply chains: three steps
To develop new supply chains or improve existing ones, executives must think at
a number of levels. First, consider the big picture: what is motivating change in
your business? What are the opportunities and risks? Once your motivations are
clear, identify the levers that will increase your odds of success. Finally, put in
place practices that will help you realize your desired outcomes.


           Step 1                                   Step 2                            Step 3




   IDENTIFY                                      ASSESS                       IMPROVE
  MOTIVATORS                                     LEVERS                      PRACTICES
    Why should you                              What levers will              How can you put
   care? What do you                        increase your chances             it into practice?
      stand to gain                               of success?
        and lose?




The frameworks presented in the following pages
will help you think through each of these steps.




Managing Sustainable Global Supply Chains                                                         7
Identify Motivators: The 5C’s Framework of Motivation
There are many reasons to address social and environmental issues in your supply chain.
Understanding these issues will enable you to set goals and prioritize practices. The chart
below lists the reasons cited by research, which align with five key areas:

1.   Customers: access, attraction, retention, reputation, brand
2.   Compliance: regulation, social pressure
3.   Costs: efficiency, productivity, risk management
4.   Competitive Advantage
5.   Conscience: moral obligation, values

                                 3%
                      7%
                                                                     CUSTOMERS
               1%                                                    attraction
          3%                                   26%                   retention
                                                                     reputation
                                                                     brand
                                                                     access

                                                                     COMPLIANCE
14%
                                                                     regulation
                                                                     social pressure

                                                                     COSTS
                                                                     risk management
  2%                                                                 efficiency
                                                                     productivity

                                                                     COMPETITIVE
                                                                     ADVANTAGE
                                                 19%
         14%
                                                                     CONSCIENCE
                                                                     moral obligation
                        1% 2%                                        or values
                                       8%

Managing Sustainable Global Supply Chains                                                     8
Assess Levers: The 7P’s Framework of Levers
Seven key levers can facilitate or inhibit your efforts to build a sustainable supply chain.
Evaluate these levers to determine if you have influence over them and how to work with them.

Examples of each are given below (the italicized examples appear most often in the literature).


                                                              INTERNAL LEVERS

                   B   LIC POLICY           PE                Purpose: alignment of sustainability with
                PU                               ER
            S                                      S          organizational strategy, history of CSR in
        R                                                     the organization
     NE

                                                              Policy: clear policy statements/codes of conduct,




                                                       PO
     T
 PAR



                                                              widely communicated policies,




                                                          W
                                                              financial resources, training and workshops,




                                                         ER
                                                              incentives, transparent and measured outcomes
                       Purpose
                        urpose
                       Purpose
                                                              People: leadership/management support,
                        Policy
                         oli
                           ic
                           i
                        Policy                                supportive organizational culture, change
                                                              agents, staff with strong personal commitments
                        People
                         eople
                        People                                and capabilities


                                                              EXTERNAL LEVERS

                                                              Peers: industry collaboration
                                                              Partners: trust in supplier engagement, dialogue
                                                              with suppliers, long-term relationships with
                                                              suppliers, third-party certification, shared vision
                                                              with suppliers, experience sharing with
                                                              suppliers, investment in suppliers, incentives in
                                                              supply relationships, collaboration with suppliers
                                                              Public policy: supportive regulation
                                                              Power: organizational size, power over suppliers




Managing Sustainable Global Supply Chains                                                                           9
Improve Practices: Baseline Practices Framework
for Sustainable Supply Chains
The following figure shows the four most prevalent practices in the literature for building
sustainable supply chains: 1) Establishing a Code of Conduct; 2) Obtaining Third-Party
Certifications; 3) Selecting Suppliers; 4) Monitoring Suppliers*. We consider these the
‘baseline’ practices that all organizations should embrace. These practices reflect a ‘command
and control’ approach to supply chain management, in which the lead buying company
dictates most rules and processes.


GIVEN THE COMPLEXITIES OF THE GLOBAL
BUSINESS ENVIRONMENT, THE ‘BASELINE’
MODEL EXHIBITS SOME SHORTCOMINGS:
• Un-negotiated expectations lack
                                                1               Code of
                                                             Conduct
                                                            Code of Conduct
                                                                                    EXPECT
                                                                                         T

                                                                                                      Certification
                                                                                                         Certification
                                                                                                                                    2
                                                         Sets expectations of
                                                          Sets expectations of
  legitimacy with local stakeholders                   required conduct
                                                                                                     Commonly used as
                                                                                                    Commonly usedas aa
                                                          required conduct                            screening device in
                                                     throughout the                                   screening device in
• Codes of conduct are relatively static                  throughout the                              supplier selection &
                                                    supply chain
                                                          supply chain                                   supplier selection
                                                                                                            development
  and unresponsive to new issues or                                                                            & development
  changes in stakeholder expectation
• Third-party certification (e.g. SA8000 or




                                                                                                                                T
                                                                                                                       S E LE C T
                                                         JECT
  ISO14001) imposes substantial costs




                                                       REJECT
  on suppliers
• Monitoring and auditing undermine trust and
  commitment in buyer-supplier relationships
• Intensive monitoring can promote unethical
  practices such as suppliers hiding issues         Monitoring/
                                                        Monitoring/                                           Selection
                                                     Auditing
                                                        Auditing                                              Is the primary
  from supply chain partners                           Ensures
                                                          Ensures                                                 Selection
                                                                                                       process for reducing
• Lack of contract security undermines                  compliance
                                                          compliance                                        Is the primary
                                                                                                                supply risks
                                                           with expections
                                                          with expections                         process for reducing
  suppliers’ willingness to invest in more                                                              supply risks
  sustainable practices                                                               SPECT
                                                                                   IN S P E C T




                                                4                                                                                   3
• Suppliers may lack resources to implement
  new approaches, and competing pressures
  (e.g. for timely deliveries) undermine the
  conditions needed for compliance

                                                *Note that different organizations may implement the practices in a different order.
                                                 For instance, third-party certification may be requested/sought concurrently with
                                                 selection, prior to selection, or after selection, in response to different needs.



Managing Sustainable Global Supply Chains                                                                                               10
Improve Practices: Best Practices Framework
for Sustainable Supply Chains
This framework addresses the shortcomings of the baseline model on the previous page by incorporating
consultation, development and learning. Depending on your company’s power, relationships, resources
and needs, you may be in a position to pursue the ‘next level’ of practices. The following page explains
each step and provides anecdotes of how companies have exemplified these practices.

                                                                     CONF
                                                           NS            I RM
                                                        TIO                        SU
                                                    CTA                              PP
                                                  PE



                  1                                                                                               2
                                                                                          LIE
                                             EX                                              RS
                                         L                                                           &
                                      FU




                              G




                                                                                                         AG
                             IN
                                                                   Measurement,




                                                                                                           RE
                           AN
                                                         Code of    Certification &




                                                                                                              E
                         ME
                                                         Conduct     Development




                                                                                                                 UP
                        E                                                  of KPIs




                                                                                                                   ON
                     AT
                   CRE




                                                                                                                      TAR
                                   Environmental
                                  Scanning                                          Supplier




                                                                                                                         GETS
                                                                                    Selection




                                                                           Supplier
                                                                         Development




                                                                                                                      NCE
                                      Data Capture,




                                                                                                                   MA
                                       Supplier
                     EV




                                        Evaluation &




                                                                                                                 OR
                                           Learning
                      AL




                                                                   Auditing




                                                                                                                 RF
                                                                                    Monitoring
                         UA




                                                                                                             PE
                  4                                                                                               3
                            TE




                                                                                                             N
                              AN




                                                                                                         AI
                                  D




                                                                                                     H
                                      IM                                                                 C
                                           PR                                                        Y
                                                OV                                            P   PL
                                                     E
                                                                                     E   SU
                                                                              S   UR
                                                                        MEA


Managing Sustainable Global Supply Chains                                                                                       11
Building a Sustainable Supply Chain Involves Four Steps:
1. Create Meaningful Expectations
Enhance your capacity to anticipate new                    Engage with widely drawn stakeholder
challenges and issues as they arise in the context         groups to encourage their participation in
of international supply chains through robust              the development of a code of conduct or other
environmental scanning.                                    documents to enhance the applicability, legitimacy
                                                           and efficacy of policies. For efficiency and to
Put it into practice:                                      avoid audit fatigue, it may be possible to find
• Organize expert workshops on key                         a pre-existing standard the company can join.
  issues with academics, NGOs, etc.
• Scan media reports on various industries                 Put it into practice:
  and geographical contexts to understand                  • Interact frequently with suppliers,
  emerging issues                                            involving on-site dialogue or inviting
• Communicate with on-site managers                          suppliers to buyers’ headquarters/plants
  to raise issues                                          • Explicitly acknowledge cultural issues
                                                             and challenges within supplier dialogue
                                                           • Use multiple communication channels, e.g.
                                                             websites, printed documents and training




Mountain Equipment Co-Op (MEC), an outdoor gear retailer, uses their Supplier
Code as the standard all vendors must adhere to. All suppliers are briefed on
the standards and their obligation to meet them. Afterward, they must sign a
Vendor Agreement formalizing their commitment. In return for their dedication,
MEC works with factories to improve practices instead of walking away.
Factories in turn must be willing to improve, and demonstrate positive results.
Source: Mountain Equipment Co-Op website.
http://www.mec.ca/Main/content_text.jsp?FOLDER%3C%3Efolder_id=2534374302883571



Managing Sustainable Global Supply Chains                                                                       12
2. Select Suppliers and Agree to Targets
Rely less on immutable ‘tick box’ criteria                      Put it into practice:
and focus more on supplier consultation                         • Hold awareness seminars with suppliers
and development. Consider accepting                               to explore and raise issues and to open
suppliers with poor current sustainability                        a space for supplier-led solutions
performance if they are committed to                            • Develop detailed sets of key performance
embarking on systematic, collaborative                            indicators (KPIs) with suppliers
improvement processes.                                          • Benchmark KPIs across suppliers and
                                                                  industry peers to ensure criteria stand
                                                                  up to external scrutiny
                                                                • Define clear systems and processes
                                                                  through which reliable performance
                                                                  data are to be obtained



The Coca-Cola Company invited top global suppliers to discuss the need to
embed sustainability in their operations. Rather than set top-down directives,
the company sought suppliers’ input to ensure long-term mutual success.
Following the summit, Coca-Cola received nearly 200 proposals from suppliers,
including ideas and strategies related to sustainable packaging, logistics,
sustainable agriculture, water stewardship and portfolio innovation.
Source: UN Global Compact, The Coca-Cola Company: Supplier Sustainability Summit,
http://supply-chain.unglobalcompact.org/site/article/70




Managing Sustainable Global Supply Chains                                                                    13
3. Evaluate and Develop Suppliers
Inform suppliers as to whether expectations                      Where performance goals are unmet, diagnose the
are being met. Practices related to this step                    underlying reasons for such failures such that a
focus on evaluating progress made by                             program of supplier development activities can
suppliers with respect to sustainability targets.                take place to support improved future performance.

Put it into practice:                                            Put it into practice:
• Develop clear and structured action                            • Involve company staff in on-site training
  plans for non-compliant suppliers                                of suppliers
• Use ‘probation periods’ in which                               • Hold supplier conferences to facilitate cross-
  suppliers can develop and implement                              supplier learning and knowledge sharing
  plans of action to address issues                              • Work with a reduced supplier base to
• Use local community evaluators                                   concentrate resources and attention
  to gather informal intelligence on                               on developing a few key suppliers
  conditions in suppliers’ plants                                • Foster and incent long-term relationships
• Introduce supplier recognition and                               with suppliers through long-term contracting
  reward programs that highlight suppliers                         and price premiums
  achieving sustainability excellence                            • Invest in suppliers via equipment, working practices
                                                                   or loans for new equipment and technology


IKEA employs a ‘Staircase Model’ which encourages continuous improvement
from its suppliers by establishing four levels of progressive achievement. Also,
IKEA audits are not just ‘box-ticking’ exercises. Each auditor must “check that
procedures work in reality.” Auditors are required to “explain the IKEA philosophy
and check that the supplier understands the key environmental impacts and has
started to measure and follow up.”
Source: Unchaining Value: Innovative approaches to sustainable supply. 2008. UN Environment Programme,
http://www.unep.fr/scp/unchaining/publications/Unchaining-Value-Final-Report.pdf


Managing Sustainable Global Supply Chains                                                                             14
4. Learn and Improve
Develop an organizational capacity to                              Put it into practice:
learn, and develop transparency and                                • Report supply chain compliance data,
accountability in achievements and                                   along with case studies of best practice
performance. Evaluate company performance                            and examples of non-compliance
to ‘close the loop’, feeding into revised                          • Establish an industry-leading position by
expectations and management practices.                               hosting cross-industry problem-sharing
Continually improve practices through                                workshops
iterative communication and measurement.                           • Establish a company task force composed
                                                                     of in-house professionals and external
                                                                     academic and NGO expertise to review
                                                                     performance evidence quarterly to identify
                                                                     patterns and explore possible solutions



Nestlé India’s supplier development department cuts costs by overcoming quality
and food safety issues and creating a wider, more flexible supply base. It trains
suppliers, provides technical assistance on safety and quality issues, and supports
suppliers’ management systems and products. The company has saved over
US$5 million in five years by developing over 70 new Indian suppliers who meet
standards. The initiative has been so successful the company replicated it in
Bangladesh, Brazil, Indonesia, Iran, Malaysia, Russia and South Africa.
Source: UN Global Compact, Nestle: Creating Shared Value. http://supply-chain.unglobalcompact.org/site/article/64




Managing Sustainable Global Supply Chains                                                                           15
                                      sustainable supply chains roadmap
                                                 Step 1                                             Step 2                                      Step 3




Putting it into Practice:
Motivations, Levers, and
                                          IDENTIFY                                           ASSESS                                       IMPROVE
Practices Assessment                     MOTIVATORS                                          LEVERS                                      PRACTICES
                                          Why should you                                   What levers will                               How can you put
Use the three frameworks to              care? What do you                             increase your chances
assess your current strengths and                                                                                                         it into practice?
                                            stand to gain                                    of success?
priority areas for improvement.               and lose?
STEP 1. Identify motivators.
        Underline the most
        important motivations
        for your company.                  motivators                                         levers                                          practices
STEP 2. Evaluate levers.
        Underline the levers with      Customers                   INTERNAL LEVERS                     EXTERNAL LEVERS                 Baseline practices
        the potential to facilitate    • access                                                                                        1. code of conduct
        your company’s supply                                      Purpose: alignment of               Peers: industry collaboration
                                       • attraction                                                                                    2. supplier selection
        chain sustainability. Star                                 sustainability with
                                       • reputation
                                                                   organizational strategy, history    Partners: trust in supplier     3. certification
        those that you haven’t         • brand                                                         engagement, dialogue with       4. monitoring/auditing
        yet taken advantage of.                                    of CSR in the organization
                                       • retention                                                     suppliers, long-term
                                                                   Policy: clear policy                relationships with suppliers,   Best practices
STEP 3. Assess practices.              Compliance                                                                                      5. environmental scanning
        Identify where your                                        statements/codes of conduct,        third-party certification,
                                       • regulation                                                                                       with stakeholders
        company is performing                                      widely communicated                 shared vision with suppliers,
                                       • social pressure                                                                               6. develop KPIs through
        at a baseline or best                                      policies, financial resources,      experience sharing with
                                                                                                                                          consultation
        practice level. Highlight      Costs                       training and workshops,             suppliers, investment in
                                                                   incentives, transparent and         suppliers, incentives in        7. supplier development
        priority practice areas        • efficiency
                                                                   measured outcomes                   supply relationships,           8. data evaluation and learning
        in which you would like        • productivity
        to improve, taking into        • risk management                                               collaboration with suppliers
                                                                   People:
        consideration your                                                                             Public policy: supportive
                                       Competitive                 leadership/management
        current practices, key
                                       Advantage                   support, supportive                 regulation
        motivators and levers,                                     organizational culture, change
                                       • competitive
        and the level and type                                     agents, staff with strong           Power: organizational size,
                                         advantage
        of resources you intend                                    personal commitments                power over suppliers
        to commit.                     Conscience                  and capabilities
                                       • moral obligation
                                       • values


                                      Managing Sustainable Global Supply Chains                                                                                          16
Case Study from a Global Supply Chain Leader
This case study uses the experience of               “These benefits protect and enhance Unilever’s
international food and consumer products             reputation, help secure supply for our business
company Unilever to show how incorporating           over the long-term, provide increased stability
the above practices into your supply chain           of operations, and create cost efficiencies.
yields benefits for the firm and its stakeholders.   Ultimately, they generate competitive advantage,”
                                                     notes John Coyne, Vice President, General
SEEING THE BIG PICTURE                               Counsel, Unilever Canada Inc.
Globally, Unilever earns annual revenues             CREATING CONSISTENT EXPECTATIONS
of over $50 billion from more than 400
brands. It sources from 10,000 raw materials         To manage for sustainability in its supply
suppliers and up to 100,000 non-production           chain, Unilever developed a Supplier Code
suppliers. In fact, Unilever purchases 12%           which defines the company’s responsible
of the world’s black teas, 6% of the world’s         sourcing requirements. This Code is based on
tomatoes, and 3% of the world’s palm oil.            both local laws and internally accepted norms
Securing supply is critical to sustaining            and helps create consistent expectations across
Unilever’s future business success and growth.       the supplier network. Unilever requires not
                                                     only that its direct suppliers adhere to the
Unilever has discovered tangible business            Code, but that direct suppliers ensure that
benefits through supply chain responsibility –       their suppliers also comply with the Code’s
championing working conditions, providing            principles. Says Coyne: “We’ve also discovered
fair-wage incomes, and managing environmental        that meeting code specifications today can be
issues such as waste and climate change.             less important than the supplier’s drive to
                                                     exceed code expectations in the future.”




Managing Sustainable Global Supply Chains                                                                17
ENGAGING, CONSULTING AND                        SHARING, LEARNING AND IMPROVING
COLLABORATING WITH OTHERS
                                                Unilever actively works to share knowledge
Unilever requests supplier self-assessments     and best practices amongst suppliers, peers
and conducts site audits to ensure suppliers    and partners. For example, through the
are meeting the Code’s requirements. It         Carbon Disclosure Project’s ‘Supply Chain
asks suppliers to use the Supplier Ethical      Leadership Collaboration’, Unilever and
Data Exchange (SEDEX) platform, which           its peers share their experiences and best
offers standardized evaluation methods          practices on how to engage suppliers in
and makes audit data widely available.          monitoring the causes of climate change
This reduces duplication between buyers,        in the supply chain. In addition, Unilever
freeing up resources for supplier development   shares its expertise with suppliers in areas
and other improvements. It also reduces         of expertise including irrigation management.
suppliers’ administrative burden and helps      As a result, water usage at farms in Brazil
them build capabilities by learning directly    has dropped 30%, while increasing tomato
from others’ assessments.                       yields 20%.

When audits reveal non-compliance,              “Unilever’s approach to supply chain
Unilever consults with its suppliers. In        sustainability has been recognized
one case, a major international sourcing        internationally by the FTSE, Dow Jones
partner was not meeting Unilever’s pollution    and the World Wildlife Fund,” notes Coyne.
standards. “By respectfully addressing this     “Reductions in energy, water and packaging
challenge with the supplier, we identified –    consumption have generated cost savings
and publicly disclosed – corrective actions,”   on products, benefiting both our margins
says Coyne.                                     and consumers.”




Managing Sustainable Global Supply Chains                                                       18
About the Research
This research was inspired by the NBS             Sources of Knowledge Used in this Report
Leadership Council, which gathers annually
                                                                     2% 2%
to identify the Priorities for Business                         3%
Sustainability. The research team, including              5%
Dr. Stephen Brammer (University of Warwick),
Dr. Stefan Hoejmose (University of Bath), and     29%                                        59%
Dr. Andrew Millington (University of Bath),
reviewed 194 relevant sources (see figure)
over 25 years. Using this set of sources, the
researchers conducted extensive, detailed
analysis and synthesis of the materials to
extract the various practices that support
sustainable supply chain management.

This review of previous research and practice
reveals the following issues:
• Research has focused mostly on social/ethical
  issues (44%), followed by environmental
  issues (21%) and the combination of both              published academic paper
                                                        business press/practitioner paper/article
  social and environmental issues (35%).
                                                        conference proceedings/paper
• The research is dominated by case-based               consultancy/NGO report
  and anecdotal empirical analysis focusing             newspaper/magazine article
  on problems and issues: there is a relative           other document
  lack of theoretical contributions, suggesting
  this literature is still in its early stages.   Read the full systematic review
                                                  (www.nbs.net/knowledge/supply-chains)
                                                  for a detailed discussion of practices,
                                                  case studies, and implications for
                                                  research and practice.




Managing Sustainable Global Supply Chains                                                           19
Funding for this research was provided by   The Network gratefully acknowledges the
the Purchasing Management Association of    input of the following individuals into this
Canada, Industry Canada, Suncor Energy,     executive report: Sharon Ferriss (PMAC),
and the Social Sciences and Humanities      John Coyne (Unilever Canada), Heather
Research Council of Canada.                 Mak, Karen Butterfield (Conference Board
                                            of Canada), Anabela Fonseca (Intertek),
                                            Georgina Wainwright-Kemdirim (Industry
                                            Canada), Robert Klassen (Richard Ivey
                                            School of Business), Larry Berglund, Erin
                                            Woodrow (Suncor), Maureen O’Higgins
                                            (BC Biomedical Labs). Note: This report
                                            is authored exclusively by Dr. Stephen
                                            Brammer, Dr. Stefan Hoejmose, Dr. Andrew
                                            Millington and the Network for Business
                                            Sustainability and does not necessarily
                                            reflect the views of the aforementioned
                                            individuals or their organizations.

                                            FEEDBACK
                                            Please let us know what you thought of this
                                            report. Contact the Network at info@nbs.net.




Managing Sustainable Global Supply Chains                                                  20
about the network
A Canadian non-profit established in 2005, the               NBS Knowledge Centre
Network for Business Sustainability produces
authoritative resources on important sustainability          For additional resources visit the Network’s
issues – with the goal of changing management                Knowledge Centre at nbs.net/knowledge.
practice. We unite thousands of researchers and
professionals worldwide who believe passionately in
research-based practice and practice-based research.

The Network is funded by the Social Sciences
and Humanities Research Council of Canada, the
Richard Ivey School of Business (at The University
of Western Ontario), the Unviersité du Québec à
Montréal, and our Leadership Council.




NBS Leadership Council
The Network’s Leadership Council is a group of Canadian sustainability leaders from diverse sectors. At an annual
meeting, these leaders identify their top priorities in business sustainability – the issues on which their organizations
need authoritative answers and reliable insights. Their sustainability priorities inspired this research project.




Managing Sustainable Global Supply Chains                                                                                   21
Network for Business Sustainability   Réseau entreprise et développement durable
c/o Richard Ivey School of Business   Département stratégie, responsabilité
University of Western Ontario         sociale et environnementale
1151 Richmond Street                  École des Sciences de la gestion
London, Ontario, Canada N6A 3K7       Université du Québec à Montréal
519-661-2111, x88980                  315, rue Ste-Catherine Est,
                                      Montréal, Québec, Canada H2X 3X2
                                      514-987-3000, x7898                          nbs.net

				
DOCUMENT INFO
Global Supply Chain Council Global Supply Chain Council http://www.supplychains.com
About Founded in 2002, the Global Supply Chain Council is Asia’s leading professional organization serving a fast growing community of more than 60,000 executives and representing leading companies who view their value chains as a critical driver of shareholder value and competitiveness. As an independent professional organization, the Council’s mission is to stimulate the understanding and adoption of supply chain management by providing a range of services including websites, magazine, directory, newsletters, research, workgroups, conferences, maps, video programming among other services. Targeting manufacturers and retailers end-users on line, in print and in person, the Council delivers a unique combination of education and lead-generation sources that helps logistics service providers, consultants, and software vendors and equipment suppliers achieve their growth objectives.